CITIZENS FIRST CORP. BOWLING GREEN, Ky., Jan. 19, 2017 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the fourth quarter and year ending December 31, 2016, which include the following:
For the quarter ended December 31, 2016, the Company reported net income of $1.10 million, or $0.43 per diluted common share. This represents a decrease of $48,000, or $0.02 per diluted common share, from $1.15 million, or $0.45 per diluted common share, for the quarter ended December 31, 2015. For the year ended December 31, 2016, net income totaled $4.22 million, or $1.66 per diluted common share. This represents an increase of $610,000, or $0.26 per diluted common share, from the net income of $3.61 million in the previous year.
"Growth in earning assets combined with improved operating efficiency resulted in record earnings in 2016 for our bank," said Todd Kanipe, President and CEO. "Loan volume strengthened, particularly in the latter half of the fourth quarter, and our credit quality metrics continued their positive trends. Maintaining the net interest margin remains challenging; however, quality loan growth has positioned us for a good start to 2017," Kanipe added.
Shares of CZFC closed at $18.00 as of December 31, 2016, an increase of 31.0% from the closing price of $13.74 at December 31, 2015, and an increase of 51.3% from the closing price of $11.90 at December 31, 2014.
Income Statement Fourth Quarter 2016 Compared to Fourth Quarter 2015
Net interest income increased $49,000, or 1.3%, as the volume of loans increased from the prior year. The Company's net interest margin was 3.80% for the quarter ended December 31, 2016, and 3.94% for the quarter ended December 31, 2015, a decrease of 14 basis points. The Company's net interest margin decreased primarily due to a decline in the yield on loans.
There was no provision for loan losses in the fourth quarter of the current year compared to a negative provision of $65,000 in the fourth quarter of the prior year due to the continued reduction in non-performing assets.
Non-interest income decreased $111,000, or 12.1%, primarily due to a reduction in other service charges and fees of $99,000, and gains on the sale of securities of $68,000.
Non-interest expense decreased $73,000, or 2.3%, primarily due to a reduction in professional fees of $126,000, partially offset by an increase in personnel expense of $93,000.
Income Statement Current Year Compared to Prior Year
Net interest income increased $536,000, or 3.6%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.87% for the year ended December 31, 2016, and 3.86% for the year ended December 31, 2015, an increase of 1 basis point. The Company's net interest margin increased due to a decline in the cost of average interest-bearing liabilities.
There was a negative provision for the current year of $85,000 compared to a provision of $135,000 in the prior year due to the continued reduction in non-performing assets.
Non-interest income decreased $8,000, or 0.2%, primarily due to an increase in gains on sale of mortgage loans of $142,000, offset by a decline in other service charges of $82,000 and non-deposit brokerage fees of $49,000.
Non-interest expense decreased $240,000, or 1.8%, primarily due to a decrease in other expenses of $205,000 and professional fees of $245,000, partially offset by an increase in personnel expenses of $340,000.
Credit Quality
Non-performing assets totaled $23,000, or 0.01% of total assets, at December 31, 2016 compared to $637,000, or 0.15% of total assets at December 31, 2015, a decrease of $614,000.
The allowance for loan losses at December 31, 2016 was $4.9 million, or 1.35% of total loans, compared to $4.9 million, or 1.49% of total loans as of December 31, 2015. We consider the size, volume and credit quality of the loan portfolio as well as recent economic and other external influences to record the allowance for loan losses and provision for loan losses that is directionally consistent with our loan portfolio.
Balance Sheet
Total assets at December 31, 2016 were $455.4 million compared to $432.2 million at December 31, 2015. Total assets increased $23.2 million, or 5.4%, from December 31, 2015 to December 31, 2016 due to a growth in loans and interest-bearing deposits in other financial institutions, partially offset by a decline in federal funds sold and available-for-sale securities.
Loans increased $28.9 million, or 8.7%, from December 31, 2015 to December 31, 2016. Deposits increased $51,000, or 0.01%, from December 31, 2015 to December 31, 2016. Borrowings from the Federal Home Loan Bank increased $20.0 million.
Stockholders' equity increased to $42.4 million at December 31, 2016 from $39.5 million at December 31, 2015. The common equity and tangible common equity ratios were 7.71% and 6.83%, respectively, as of December 31, 2016 compared to 7.37% and 6.43%, respectively, at December 31, 2015. The book value and tangible book value per common share ratios were $17.54 and $15.40, respectively, at December 31, 2016 compared to $16.18 and $13.97, respectively, at December 31, 2015.
About Citizens First Corporation
Citizens First Corporation is a bank holding company headquartered in Bowling Green, Kentucky and established in 1999. The Company has branch offices located in Barren, Hart, Simpson and Warren Counties in Kentucky, and a loan production office in Williamson County, Tennessee. Additional information concerning our products and services is available at www.citizensfirstbank.com.
Forward-Looking Statements
Statements in this press release relating to Citizens First Corporation's plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon the Company's current expectations, but are subject to certain risks and uncertainties that may cause actual results to differ materially. Among the risks and uncertainties that could cause actual results to differ materially are current and future economic and business conditions; possible changes in trade, monetary, and fiscal policies, as well as legislative and regulatory changes; changes in the interest rate environment and our ability to effectively manage interest rate risk and other market risk, credit risk and operational risk; changes in the quality or composition of our loan or investment portfolios; increases in our nonperforming assets, or our inability to recover or absorb losses created by such nonperforming assets; and other factors described in the reports filed by the Company with the Securities and Exchange Commission could also impact current expectations.
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Condition
(In Thousands, Except Share Data and ratios)
December 31, December 31, December 31,
2016 2015 2014
---- ---- ----
Assets
Cash and due from financial institutions $8,542 $8,865 $7,962
Federal funds sold - 6,390 3,360
Interest-bearing deposits in other financial institutions 11,018 2,728 -
Available-for-sale securities 53,547 60,200 58,986
Loans held for sale 264 - -
Loans 359,391 330,782 318,477
Allowance for loan losses (4,854) (4,916) (4,885)
Premises and equipment, net 9,390 9,998 10,758
Bank owned life insurance (BOLI) 8,351 8,174 7,993
Federal Home Loan Bank (FHLB) stock, at cost 2,025 2,025 2,025
Accrued interest receivable 1,622 1,680 1,527
Deferred income taxes 1,464 1,328 1,479
Goodwill and other intangible assets 4,291 4,362 4,433
Other real estate owned - 100 198
Other assets 371 465 501
--- --- ---
Total Assets $455,422 $432,181 $412,814
-------- -------- --------
Liabilities
Deposits
Noninterest bearing $52,322 $48,522 $41,975
Savings, NOW and money market 173,620 168,335 148,935
Time 144,497 153,531 150,874
------- ------- -------
Total deposits 370,439 370,388 341,784
FHLB advances and other borrowings 35,000 15,000 25,500
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 220 213 231
Other liabilities 2,399 2,056 1,851
----- ----- -----
Total Liabilities 413,058 392,657 374,366
------- ------- -------
Stockholders' Equity
6.5% Cumulative convertible preferred stock 7,261 7,659 7,659
Common stock 25,920 25,406 27,072
Retained earnings 9,706 6,304 3,373
Accumulated other comprehensive income (523) 155 344
---- --- ---
Total stockholders' equity 42,364 39,524 38,448
------ ------ ------
Total liabilities and stockholders' equity $455,422 $432,181 $412,814
======== ======== ========
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Three months ended
(In Thousands, Except Per Share Data and ratios)
Dec 31, Sept 30, June 30, March 31, Dec 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Interest and dividend income $4,572 $4,557 $4,536 $4,476 $4,494
Interest expense 652 639 624 613 623
Net interest income 3,920 3,918 3,912 3,863 3,871
Provision (credit) for loan losses - - (85) - (65)
Non-interest income
Service charges on deposit accounts 371 361 339 325 360
Other service charges and fees 161 172 179 164 260
Gain on sale of mortgage loans 97 110 91 77 63
Non-deposit brokerage fees 85 83 75 72 82
Lease income 52 61 49 45 43
BOLI income 44 45 44 44 45
Gain on sale of securities - 20 55 51 68
--- --- --- --- ---
Total non-interest income 810 852 832 778 921
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,741 1,674 1,676 1,784 1,648
Net occupancy expense 471 481 492 483 464
Advertising and public relations 75 86 98 61 80
Professional fees 50 98 137 180 176
Data processing services 256 262 263 256 262
Franchise shares and deposit tax 132 132 132 132 96
FDIC insurance 47 58 59 59 61
Other real estate owned expenses 1 (8) 23 1 52
Other 373 362 417 414 380
--- --- --- --- ---
Total non-interest expenses 3,146 3,145 3,297 3,370 3,219
Income before income taxes 1,584 1,625 1,532 1,271 1,638
Income taxes 481 490 458 366 487
--- --- --- --- ---
Net income 1,103 1,135 1,074 905 1,151
Dividends on preferred stock 124 124 123 124 131
--- --- --- --- ---
Net income available for common stockholders $979 $1,011 $951 $781 $1,020
==== ====== ==== ==== ======
Basic earnings per common share $0.49 $0.50 $0.48 $0.39 $0.52
===== ===== ===== ===== =====
Diluted earnings per common share $0.43 $0.45 $0.42 $0.36 $0.45
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Three months ended
(In Thousands, Except Per Share Data and ratios)
Dec 31, Sept 30, June 30, March 31, Dec 31,
2016 2016 2016 2016 2015
---- ---- ---- ---- ----
Average:
Assets $444,168 $442,042 $439,081 $433,143 $430,174
Earning Assets 417,161 414,569 409,722 402,638 399,055
Loans 347,046 344,733 338,456 333,000 329,131
Interest-bearing deposits 310,336 304,473 311,084 320,363 316,979
Deposits 360,816 354,953 360,209 367,397 365,401
Borrowed funds 38,429 42,490 35,868 23,394 23,179
Equity 42,652 42,002 40,912 40,156 39,181
Common equity 35,391 34,741 33,651 32,831 31,522
Return on average assets 0.99% 1.02% 0.98% 0.84% 1.06%
Return on average equity 10.29% 10.75% 10.56% 9.06% 11.66%
Efficiency ratio 65.59% 65.21% 69.15% 72.15% 66.91%
Non-interest income to average assets 0.73% 0.77% 0.76% 0.72% 0.85%
Non-interest expenses to average assets 2.82% 2.83% 3.02% 3.13% 2.97%
Net overhead to average assets 2.09% 2.06% 2.26% 2.41% 2.12%
Yield on loans 4.86% 4.86% 4.95% 4.96% 4.97%
Yield on investment securities (TE) 2.58% 2.66% 2.77% 2.77% 2.84%
Yield on average earning assets (TE) 4.42% 4.44% 4.53% 4.55% 4.55%
Cost of average interest bearing liabilities 0.74% 0.73% 0.72% 0.72% 0.73%
Net interest margin (TE) 3.80% 3.83% 3.92% 3.94% 3.94%
Number of FTE employees 95 94 96 98 98
Asset Quality Indicators:
Non-performing loans to total loans 0.01% 0.05% 0.06% 0.18% 0.16%
Non-performing assets to total assets 0.01% 0.04% 0.06% 0.16% 0.15%
Allowance for loan losses to total loans 1.35% 1.45% 1.43% 1.53% 1.49%
YTD net charge-offs (recoveries) to average loans, annualized (0.01)% (0.05)% (0.07)% (0.15)% 0.03%
YTD net charge-offs (recoveries) (23) (130) (119) (128) 104
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Twelve Months Ended
December 31, December 31,
2016 2015
---- ----
Interest and dividend income $18,141 $17,684
Interest expense 2,528 2,607
Net interest income 15,613 15,077
Provision (credit) for loan losses (85) 135
Non-interest income
Service charges on deposit accounts 1,396 1,421
Other service charges and fees 676 758
Gain on sale of mortgage loans 375 233
Non-deposit brokerage fees 315 364
Lease income 207 245
BOLI income 177 181
Gain on sale of securities 126 78
--- ---
Total non-interest income 3,272 3,280
----- -----
Non-interest expenses:
Personnel expense 6,875 6,535
Net occupancy expense 1,927 1,980
Advertising and public relations 320 330
Professional fees 465 710
Data processing services 1,037 1,001
Franchise shares and deposit tax 528 533
FDIC insurance 223 244
Other real estate owned expenses 17 94
Other 1,566 1,771
----- -----
Total non-interest expenses 12,958 13,198
Income before income taxes 6,012 5,024
Income taxes 1,795 1,417
----- -----
Net income 4,217 3,607
Dividends on preferred stock 495 520
--- ---
Net income available for common stockholders $3,722 $3,087
====== ======
Basic earnings per common share $1.86 $1.57
===== =====
Diluted earnings per common share $1.66 $1.40
===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Twelve Months Ended
(In Thousands, Except Per
Share Data and ratios)
December 31, December 31,
2016 2015
---- ----
Average:
Assets $439,628 $430,180
Earning Assets 411,049 399,420
Loans 340,836 322,256
Interest-
bearing
deposits 311,138 320,551
Deposits 360,827 365,788
Borrowed funds 35,075 23,488
Equity 41,345 38,726
Common equity 34,068 31,067
Return on
average assets 0.96% 0.84%
Return on
average equity 10.20% 9.32%
Efficiency ratio 67.99% 70.84%
Non-interest
income to
average assets 0.74% 0.76%
Non-interest
expenses to
average assets 2.95% 3.07%
Net overhead to
average assets 2.20% 2.31%
Yield on loans 4.90% 5.04%
Yield on
investment
securities (TE) 2.70% 2.84%
Yield on average
earning assets
(TE) 4.49% 4.52%
Cost of average
interest
bearing
liabilities 0.73% 0.76%
Net interest
margin (TE) 3.87% 3.86%
Number of FTE
employees 95 98
Consolidated Financial Highlights (Unaudited)
(In Thousands, Except Share Data and ratios)
December 31, December 31, December 31,
Consolidated Capital
Ratios 2016 2015 2014
---- ---- ----
Total shareholders'
equity to total
assets ratio 9.30% 9.15% 9.31%
Tangible equity ratio
(1) 8.44% 8.22% 8.33%
Tangible common equity
ratio (1) 6.83% 6.43% 6.45%
Book value per common
share $17.54 $16.18 $15.64
Tangible book value
per common share (1) $15.40 $13.97 $13.39
End of period common
share closing price $18.00 $13.74 $11.90
(1) The tangible equity ratio, tangible
common equity ratio and tangible
book value per common share, while
not required by accounting
principles generally accepted in
the United States of America
(GAAP), are considered critical
metrics with which to analyze
banks. The ratio and per share
amount have been included to
facilitate a greater understanding
of the Company's capital structure
and financial condition. See the
Regulation G Non-GAAP
Reconciliation table for
reconciliation of this ratio and
per share amount to GAAP.
(In Thousands, Except Share Data and ratios)
December 31, December 31, December 31,
Regulation G Non-GAAP
Reconciliation: 2016 2015 2014
---- ---- ----
Total shareholders'
equity (a) $42,364 $39,524 $38,448
Less:
Preferred stock (7,261) (7,659) (7,659)
------ ------ ------
Common equity (b) 35,103 31,865 30,789
Goodwill (4,097) (4,097) (4,097)
Intangible assets (194) (265) (336)
---- ---- ----
Tangible common equity
(c) 30,812 27,503 26,356
Add:
Preferred stock 7,261 7,659 7,659
----- ----- -----
Tangible equity (d) 38,073 35,162 34,015
Total assets (e) 455,422 432,181 412,814
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (194) (265) (336)
---- ---- ----
Tangible assets (f) $451,131 $427,819 $408,381
Shares outstanding (in
thousands) (g) 2,001 1,969 1,969
Book value per common
share (b/g) $17.54 $16.18 $15.64
Tangible book value per
common share (c/g) $15.40 $13.97 $13.39
Equity to assets ratio
(a/e) 9.30% 9.15% 9.31%
Tangible equity ratio
(d/f) 8.44% 8.22% 8.33%
Common equity ratio (b/
e) 7.71% 7.37% 7.46%
Tangible common equity
ratio (c/f) 6.83% 6.43% 6.45%
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SOURCE Citizens First Corporation
